7 Best RRSP Investments Before the March 2026 Deadline
The RRSP contribution deadline for the 2025 tax year is March 2, 2026—and the clock is ticking.
If you’ve got unused RRSP contribution room, now is the time to maximize your tax deduction and put that money to work. But with so many investment options available, what should you actually buy inside your RRSP?
In this guide, I’ll walk you through the 7 best RRSP investments for 2026, ranked by risk tolerance and time horizon. Whether you’re 25 or 55, there’s an option here that fits your situation.
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Open Your RRSP NowWhy Your RRSP Investment Choice Matters
Your RRSP is a tax-deferred account, meaning you don’t pay taxes on contributions or growth until you withdraw the money (ideally in retirement when your income is lower).
But here’s what many Canadians get wrong:
❌ They contribute to their RRSP but leave the money in cash ❌ They buy high-fee mutual funds that eat away at returns ❌ They choose investments that don’t match their timeline ❌ They try to pick individual stocks and underperform
The right approach:
✅ Contribute the maximum you can afford ✅ Invest immediately (don’t let cash sit idle) ✅ Choose low-fee, diversified investments ✅ Match your investment to your time horizon ✅ Set and forget until retirement
Let’s dive into the 7 best options.
1. All-in-One Equity ETFs (XEQT/VEQT)
Best for: Investors with 20+ years until retirement
Asset Allocation: 100% stocks (0% bonds)
Management Fee: 0.20-0.24%
Expected Return: ~8-10% annualized long-term
Risk Level: High
Why It's the #1 RRSP Investment:
If you won't need your RRSP money for 20+ years, all-in-one equity ETFs like XEQT are the single best investment you can make. Here's why:
- Maximum growth potential over long periods
- 9,000+ global stocks in one fund
- Automatic rebalancing across markets
- Ultra-low fees (0.20% vs. 2%+ for mutual funds)
- Simplicity - buy once and forget
How It Works:
XEQT (or VEQT) holds a complete global stock portfolio:
- ~50% US stocks (Apple, Microsoft, Amazon, etc.)
- ~25% Canadian stocks (banks, energy, etc.)
- ~25% international stocks (Europe, Asia, emerging markets)
Tax Efficiency in RRSPs:
✅ Perfect for RRSPs because:
- Dividends and capital gains grow tax-free until withdrawal
- No foreign withholding tax on US dividends (RRSP exemption)
- Compounding happens on the full amount (no annual taxes)
Example Scenario:
$10,000 invested in XEQT at age 30, withdrawn at age 65 (35 years):
- At 8% annual return: $147,853
- At 10% annual return: $281,024
Compare this to leaving cash in your RRSP (0% growth) and you can see why investing immediately matters.
Who Should Avoid XEQT/VEQT:
- Anyone within 10 years of retirement (too volatile)
- Investors who panic during market downturns
- Those with low risk tolerance
2. Balanced All-in-One ETFs (XGRO/VGRO)
Best for: Investors with 10-20 years until retirement
Asset Allocation: 80% stocks / 20% bonds
Management Fee: 0.20-0.24%
Expected Return: ~6-8% annualized
Risk Level: Medium-High
Why It's a Top RRSP Choice:
If you want growth with a cushion, balanced ETFs like XGRO provide 80% stock exposure with a 20% bond buffer to reduce volatility.
Benefits:
- Less volatility than 100% equity during downturns
- Still growth-focused with 80% stocks
- Automatic rebalancing between stocks and bonds
- Same low fees as XEQT (0.20%)
How It Differs from XEQT:
During a 30% stock market crash:
- XEQT (100% equity) would drop ~30%
- XGRO (80/20) would drop ~24% (bonds cushion the fall)
Tax Efficiency:
✅ Bonds are best held in RRSPs because bond interest is taxed heavily in non-registered accounts. XGRO takes full advantage of RRSP tax-deferral.
Who Should Choose XGRO/VGRO:
- Investors 10-20 years from retirement
- Those who want growth but can’t stomach full equity volatility
- People seeking a “set and forget” moderate-risk option
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Start Investing Today3. Conservative All-in-One ETFs (XBAL/VBAL)
Best for: Investors within 5-10 years of retirement
Asset Allocation: 60% stocks / 40% bonds
Management Fee: 0.20-0.24%
Expected Return: ~5-6% annualized
Risk Level: Medium
Why It Works for Pre-Retirees:
If retirement is on the horizon, you need to prioritize capital preservation while still growing your wealth. XBAL's 60/40 split provides:
- Meaningful bond protection (40%) during crashes
- Continued growth from 60% equity exposure
- Lower volatility than XGRO or XEQT
- Income generation from bond yields
Expected Volatility:
During a major market downturn:
- XEQT (100% equity): -30% to -40%
- XGRO (80/20): -24% to -32%
- XBAL (60/40): -18% to -24% ← Much more stable
Who Should Choose XBAL/VBAL:
- Anyone within 5-10 years of retirement
- Conservative investors prioritizing stability
- Those who need to access RRSP funds relatively soon
4. Target-Date Funds
Best for: Hands-off investors who want automatic de-risking
How They Work:
Target-date funds automatically shift from stocks to bonds as you approach retirement. For example:
- Vanguard Target Retirement 2050 (retirement in ~2050)
- Today: 90% stocks / 10% bonds
- In 2040: 70% stocks / 30% bonds
- In 2050: 50% stocks / 50% bonds
Benefits:
- Fully automated risk reduction over time
- No rebalancing needed on your part
- Matches your retirement timeline
Drawbacks:
- Slightly higher fees than all-in-one ETFs (often 0.5-0.8% MER)
- Less control over asset allocation
- May become too conservative too soon
Best Options in Canada:
- Vanguard Target Retirement Funds
- BlackRock LifePath Index Funds
Who Should Choose Target-Date Funds:
- True “set and forget” investors who never want to think about rebalancing
- Those who want automatic de-risking as retirement approaches
5. Wealthsimple Invest (Robo-Advisor)
Best for: Completely hands-off investors who want managed portfolios
What It Is:
Wealthsimple Invest is a robo-advisor that builds and manages a diversified ETF portfolio for you automatically.
How It Works:
- You answer a questionnaire about your goals and risk tolerance
- Wealthsimple builds a custom portfolio (stocks + bonds)
- It automatically rebalances and reinvests dividends
- You never have to pick investments or manage anything
Fees:
- 0.5% management fee (plus underlying ETF fees of ~0.20%)
- Total cost: ~0.70% annually
Benefits:
- Zero effort - completely automated
- Tax-loss harvesting (for taxable accounts)
- Automatic rebalancing
- Socially responsible portfolios available
Drawbacks:
- Higher fees than buying XEQT yourself (0.70% vs. 0.20%)
- Less control over specific investments
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Get Started →Who Should Choose Wealthsimple Invest:
- Investors who want zero involvement
- Those willing to pay slightly more for convenience
- People who value automatic rebalancing and tax optimization
6. Canadian Dividend ETFs
Best for: Income-focused investors nearing retirement
Asset Type: Canadian dividend-paying stocks
Management Fee: 0.15-0.25%
Dividend Yield: ~3-4% annually
Risk Level: Medium
Why Dividend ETFs in an RRSP:
Canadian dividend ETFs hold stocks of companies that pay regular dividends (banks, utilities, telecom):
- Steady income through dividends
- Lower volatility than growth stocks
- Tax-efficient in RRSPs (dividends compound tax-free)
Top Holdings (VDY example):
- Royal Bank, TD Bank, Scotiabank
- Enbridge, TC Energy (pipelines)
- BCE, Telus (telecom)
Drawbacks:
- Heavy Canadian concentration (not globally diversified)
- Sector bias toward financials and energy
- Lower growth potential than XEQT
Who Should Choose Dividend ETFs:
- Investors prioritizing income over growth
- Those comfortable with heavy Canadian exposure
- Pre-retirees wanting dividend cash flow
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Open Your Free Account7. GICs (Guaranteed Investment Certificates)
Best for: Conservative investors within 1-5 years of retirement
Risk Level: None (principal guaranteed)
Tax Efficiency: Best in RRSP (interest is fully taxable otherwise)
Why GICs in an RRSP:
If you're very close to retirement or extremely risk-averse, GICs offer guaranteed returns with zero market risk.
Benefits:
- Guaranteed principal (you can't lose money)
- Predictable returns (fixed interest rate)
- CDIC insured up to $100,000 per institution
- Tax-deferred growth in RRSP
Drawbacks:
- Lower returns than stocks long-term
- Won't keep pace with inflation over time
- Locked in for the term (1-5 years typically)
When to Use GICs:
- You're within 1-3 years of retirement
- You can't afford any market volatility
- You're extremely conservative
Our Take:
GICs are great for short-term goals and capital preservation, but they’re a poor choice for long-term wealth building. If you’re under 50, stick with equity ETFs.
Quick Comparison: Which RRSP Investment is Right for You?
Our Top Recommendation: XEQT for Most Canadians
If you’re under 50 and have a long time horizon, XEQT (or VEQT) is the best RRSP investment for 2026.
Here’s why:
✅ Lowest fees (0.20%) mean more of your money compounds ✅ Global diversification across 9,000+ stocks ✅ Maximum growth potential over 20+ years ✅ Set and forget - no rebalancing needed ✅ Tax-efficient in RRSPs (no foreign withholding tax on US holdings)
The math:
Contributing $10,000 annually to an RRSP from age 30 to 65 (35 years):
- At 8% return (XEQT): $1,861,021
- At 5% return (GICs): $1,026,305
- Difference: $834,716 (!!)
That’s nearly $835,000 in lost wealth by playing it too safe.
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Get Your $25 BonusHow to Invest Before the March 2, 2026 Deadline
Step 1: Check Your RRSP Contribution Room
Log into your CRA My Account to see your available room. For 2026, the contribution limit is 18% of your 2025 income (up to $32,490 max).
Step 2: Open an RRSP (if you don’t have one)
- Fastest option: Wealthsimple (15-minute setup)
- Other options: Questrade, Qtrade, bank brokerages
Step 3: Transfer Funds
Transfer money from your bank account to your RRSP. This can take 1-3 business days, so don’t wait until March 1st.
Step 4: Buy Your Investment
Search for your chosen ETF (XEQT, XGRO, etc.) and buy shares. On Wealthsimple, all ETF trades are commission-free.
Step 5: Keep Your Receipt
Your RRSP contribution receipt is needed for your 2025 tax return to claim your deduction.
⏰ Don't Miss the March 2nd Deadline
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Open Your RRSP Now →Common RRSP Investing Mistakes to Avoid
❌ Mistake #1: Contributing but not investing
Many Canadians contribute cash to their RRSP but leave it sitting uninvested. Cash earns 0% and gets destroyed by inflation. Always invest immediately.
❌ Mistake #2: Paying high mutual fund fees
Banks love to sell 2%+ MER mutual funds for RRSPs. Over 30 years, that 2% fee costs you over $500,000 compared to a 0.20% ETF. Stick with low-cost ETFs.
❌ Mistake #3: Over-trading
Your RRSP is a long-term account. Resist the urge to trade frequently or time the market. Buy XEQT (or your chosen investment) and hold for decades.
❌ Mistake #4: Choosing investments that don’t match your timeline
Don’t put 100% equity (XEQT) if you’re retiring in 5 years. Don’t put GICs if you’re 30. Match the investment to your horizon.
❌ Mistake #5: Waiting until the last minute
Don’t wait until March 1st to contribute. Markets can be volatile, fund transfers take time, and you might miss the deadline.
The Bottom Line
The best RRSP investment for 2026 depends on your timeline:
- 20+ years to retirement? → XEQT or VEQT (100% equity)
- 10-20 years? → XGRO or VGRO (80/20)
- 5-10 years? → XBAL or VBAL (60/40)
- Under 5 years? → GICs or high-interest savings
For most Canadians under 50, XEQT is the clear winner—it offers maximum growth potential, ultra-low fees, and complete global diversification in a single fund.
Don’t let the March 2, 2026 deadline pass without taking action. Contribute the maximum you can afford, invest it immediately in a low-cost ETF like XEQT, and let compound growth do the heavy lifting.
Your future self will thank you.
🎁 Ready to Maximize Your RRSP?
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Get Your $25 BonusDisclosure: This post contains referral links. I may receive compensation if you sign up through these links, but this doesn’t affect my honest assessment. The investments listed are suitable for most Canadian investors seeking to maximize their RRSP returns before the 2026 deadline.